INDIA: Diageo close to deal in Tamil Nadu - report

By just-drinks.com editorial team | 3 June 2009

Diageo is to become the first international spirits firm to enter the Indian state of Tamil Nadu, after securing a deal with state authorities, according to a report.

A bottling tie-up between Diageo and local SNJ Distilleries has been cleared by the state government, according to a report in the Economic Times newspaper this week.

Tamil Nadu only allows drinks firms with bottling operations inside its borders to sell their products in the state.

A Diageo spokesperson declined to comment on the report when contacted by just-drinks.

Diageo confirmed to just-drinks in November 2008 that it intended to acquire a bottler in Tamil Nadu, as a way of gaining access to the state.

Tamil Nadu is under increasing pressure from the Scotch Whisky Association over restrictions it places on imports.

Sectors: Spirits

Companies: Diageo, Scotch Whisky Association